The AES Corporation (AES)vsSouthern Company (SO)
AES
The AES Corporation
$14.79
-0.07%
UTILITIES · Cap: $10.58B
SO
Southern Company
$87.02
-0.17%
UTILITIES · Cap: $100.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 131% more annual revenue ($30.18B vs $13.05B). SO leads profitability with a 15.4% profit margin vs 14.3%. AES appears more attractively valued with a PEG of 1.09. AES earns a higher WallStSmart Score of 73/100 (B).
AES
Strong Buy73
out of 100
Grade: B
SO
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-37.3%
Fair Value
$11.97
Current Price
$14.79
$2.82 premium
Margin of Safety
-40.5%
Fair Value
$62.06
Current Price
$87.02
$24.96 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 951.0% YoY
Reasonable price relative to book value
19.9% revenue growth
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 29.6%
Earnings expanding 30.4% YoY
Areas to Watch
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Expensive relative to growth rate
0.1% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : AES
The strongest argument for AES centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 19.9% demonstrates continued momentum. PEG of 1.09 suggests the stock is reasonably priced for its growth.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 29.6%.
Bear Case : AES
The primary concerns for AES are Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 6.50 is elevated, increasing financial risk.
Bear Case : SO
The primary concerns for SO are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.95 is elevated, increasing financial risk.
Key Dynamics to Monitor
AES profiles as a growth stock while SO is a value play — different risk/reward profiles.
AES carries more volatility with a beta of 0.95 — expect wider price swings.
AES is growing revenue faster at 19.9% — sustainability is the question.
SO generates stronger free cash flow (-293M), providing more financial flexibility.
Bottom Line
AES scores higher overall (73/100 vs 66/100) and 19.9% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
The AES Corporation
UTILITIES · UTILITIES - DIVERSIFIED · USA
The AES Corporation is a Fortune 500 company that generates and distributes electrical power. AES is headquartered in Arlington, Virginia.
Visit Website →Southern Company
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.
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